Eurozone Inflation Reaches 10.7%, Breaks all Previous Records

The Eurozone recorded its 12th straight month of rising inflation. However, this time the number has reached new highs after the region witnessed a 10.7% increase, up form 9.9% in the previous month. This is the highest inflation rate that the region has ever observed, higher than the 10.2% projected number. At 12.8% year-over-year, headline inflation in Italy exceeded analysts’ predictions. Germany reported that inflation increased to 11.6%, while France reported a 7.1% increase. The various values represent policies adopted by national governments as well as the degree to which those countries are or were dependent on Russian hydrocarbons. Germany is heavily dependant on Russian energy. Given that winter, particularly a cold one this year, is just around the corner, Germany is put on the spot for its energy need    s.However, there are certain euro-zone countries where inflation increased by more than 20%, such as Estonia, Latvia, and Lithuania.

What is the central bank doing to curb inflation?

In an effort to lower costs, the European Central Bank confirmed more rate increases in the upcoming months. Last week, the ECB made the decision to increase interest rates by 75 basis points for the second time in a row. The chance of a recession in the euro zone has increased, according to ECB President Christine Lagarde, who spoke at a press conference.

However, there are certain euro-zone countries where inflation increased by more than 20%, such as Estonia, Latvia, and Lithuania.

What is the central bank doing to curb inflation?

In an effort to lower costs, the European Central Bank confirmed more rate increases in the upcoming months. Last week, the ECB made the decision to increase interest rates by 75 basis points for the second time in a row. The chance of a recession in the euro zone has increased, according to ECB President Christine Lagarde, who spoke at a press conference.